Chinese premier warns against loose policies

INFLATION RISK:To generate 10 million jobs in one year, China’s economy must grow by 7.2 percent, but the easy credit available there could lead to inflation

Reuters and AP, BEIJING

China’s solar panel manufacturers have been especially hard-hit by excess production capacity and price-cutting. In other industries, large amounts of production capacity are idle, the Cabinet statement said.

Cement manufacturers use only 71.9 percent of their capacity as of the end of last year, according to the statement. The steel industry used 72 percent while the rate for glass manufacturers was 73.1 percent.